To all:
Larry Macklin forwarded this email to me, I thought I would share it with the thread.
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CPM Group's Reputation
CPM Group is known for many talents. It is the combination of these skills, and the experience that has developed them, that provides CPM Group with its overall superior market capacity.
Accurate Statistics
First and foremost, CPM Group is respected around the world as the premier source of reliable, accurate statistics and estimates on gold, silver, copper, and platinum group metals supply and demand.
CPM Group maintains a massive data base on precious metals, commodities, and macroeconomic trends. This information source is the heart of CPM Group's operations, providing detailed information, intelligence, and analysis about an enormous range of topics related to precious metals and commodities almost instantaneously. CPM Group constantly is collecting information from a wide range of sources, including market contacts, field research, and trade flow studies. This constant inflow of information provides CPM Group and its clients with the latest intelligence about what is going on in these markets, and why.
CPM Group grew out of a research operation that was created in the middle of the 1970s, at a time when there was virtually no information on precious metals markets available. The basic concept of CPM Group's creation was to develop a critical network of information sources that would provide the best possible understanding of these markets, how they work, what corporations were active, what the economics and mechanics of the markets were, and how prices are determined.
The precious metals markets today remain grossly under-reported. They are characterized by sparse information and statistics, with much of the information circulating these markets being inaccurate, based on rumors. By instantaneously securing access to accurate market intelligence, CPM Group is able to help its clients position themselves to best benefit from the inevitable corrections that occur when the prices of commodities react to inaccurate and incomplete information.
Economic Analysis of Precious Metals Markets
In addition to having developed a superior flow of basic statistics, CPM Group also undertakes detailed economic and econometric analysis of the precious metals and commodity markets. Few other companies involved in precious metals actually calculate the price and income elasticities of basic supply and demand sectors, or have a detailed understanding of how changes in prices or basic economic conditions should be expected to affect supply, demand, and ultimately the future prices of precious metals. CPM Group also undertakes studies on the intensity of demand for precious metals, copper, and other commodities, and a wide range of other econometric and regression analyses that yield critical insights into the price-making mechanisms of these markets. Included are studies concerning the relationship between individual commodity prices, and commodity indices, to such macro-economic variables as inflation, real economic growth, stock market trends, interest rates, currency exchange rates, and a host of other variables.
Overall Financial Market and Global Economic Research and Forecasting
Given the inextricable relationship between precious metals markets and conditions in the world's financial markets and economic realm, CPM Group works diligently to analyze other markets and the overall economic outlook for the world. For example, following the stock market crash of October 1987, CPM Group's analysis was that the world economy would not be thrown into a recession at that time as a result of that decline. CPM Group's projection in late 1987 was that a recession would not begin in the industrial world until 1990 or 1991. Based on this view, CPM Group adopted a negative price outlook for gold and silver for the years following that stock market collapse, an analysis that was proven correct.
CPM Group is known for a number of other characteristics.
Confidentiality Market Neutrality Readability Accurate Price Projections Price Neutrality
Regarding this last point, CPM Group strives to be correct in its price outlook, even if that means projecting lower prices on a short or intermediate term basis. Surprisingly, this is in sharp contrast to many precious metals market participants, some of whom always are positive in their price outlook. By forecasting the market accurately on both the up and down side, CPM Group is able to help its clients profit in both types of markets.
Given the price patterns of precious metals, and other commodities, this price neutrality can be critical to successful market participation.
For example, CPM Group was negative on silver for 81% of the time from December 1980 through August 1994. It recommended against gold as an intermediate term investment for 70% of that time.
Of course, CPM Group has a complex view of these markets. While it tracks intermediate term markets, as represented above, it also provides shorter term and longer term price projections to clients with shorter and longer term market exposures. CPM Group avoids advising on intra-day trading activity, although it does work for a number of clients involved in this segment of the market. On the long end of the price projection spectrum, CPM Group regularly takes its supply, demand, and price projections out at least 10 years. In some instances, it produces 20 year forecasts for clients.
Ethics
CPM Group adheres to the highest ethical standards, continually working to assure that CPM Group, its principals, and employees conduct themselves in ways that do not bear even the hint of conflicts of interest that would compromise our clients' business activities, or our abilities to perform our duties to our clients and the market.
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I thought this would make good background material.
mark. |
